D2C commerce

What is D2C commerce?

What distinguishes a direct-to-consumer (D2C) e-commerce approach from a conventional store business model? Direct-to-consumer (D2C) e-commerce is when a company or producer offers their goods or produce to customers from their online shop. The manufacturer/producers > the wholesaler > the distributor > the retailers > the consumers > is a more conventional retailer business model.

The intermediary is essentially "cut out" of the D2C e-commerce business. Additionally, studies have indicated that customers like shopping directly with brand manufacturers over merchants by a margin of 55%.

Since the typical retailer business model is around buying in bulk, a manufacturer would have to start selling individual goods if they wanted to start selling directly to consumers.

• According to a 2021 survey, the factor that would most motivate global consumers to buy online directly from brands would be a better price, mentioned by 58 percent of respondents. Free returns along with fast and convenient delivery shared third place, with 36 percent each.
• Results from the Global Consumer Survey Special "E-Commerce", conducted in October 2021, show that Chinese digital shoppers care more about having a direct connection to sellers than other places around the world. About 43 percent of respondents in Mainland China who had purchased online stated they liked online stores that provide a direct connection to the original seller. In the U.S., this share stood at 32 percent.
• Direct online sales from manufacturers to consumers in Germany are on the rise. Direct-to-consumer (D2C) e-commerce revenue in the German market grew from 730.3 million euros in the third quarter of 2020 to 880 million euros in the third quarter of 2021. This represents a 20.5 percent inter-annual growth rate.
• Among Central and Eastern European countries, Czechia recorded the highest D2C annual sales growth at over 23 percent in 2021.
• A study forecasting the development of direct-to-consumer sales in the United Kingdom projected that by 2023, D2C sales would grow by 27.5 percent for food and drinks industry. In other segments of the consumer goods sector, furniture and homeware and sporting goods were two other categories that are projected to grow D2C sales by over 50 percent.

Online direct sale to your customers

Brands and manufacturers are drawn to the D2C business model for a variety of reasons. Direct-to-consumer (D2C) commerce enables producers to offer their items directly to customers, bypassing any middlemen. Greater control over the brand, marketing, and entire customer experience is now possible.

Your brand is not constrained by the merchants with D2C e-commerce. At any time of the year, you are free to sell your items in as many varieties as you wish. From the initial click on your website to the checkout and beyond, the purchasing process belongs to you. You can better understand your audience and adjust your marketing, product, and go-to-market strategies to meet consumer demand if you have complete control over the client experience.In the realm of business, nothing is more precious or crucial than customer data, which also implies that you control all of the customer data.

Improve your success with DTC

The D2C method offers a chance to considerably reduce expenses, whether you're a traditional, non-digital manufacturer or a digitally native corporation with only an online product. It makes a significant difference to not have to take merchant markup into consideration. As a result, you have two options: either reduce your pricing to attract customers away from your rivals, or significantly raise your margins to boost your profitability.

Assisting eCommerce companies in creating D2C operations

How can you tell if a direct-to-consumer business strategy is right for your specific organization? Before taking this action, there are a number of things to think about. You may achieve this by examining market data, creating and comprehending industry benchmarks, and getting strategic counsel.

We at Mygento can help you along the way since we have assisted a lot of companies in starting their B2C, B2B, and D2C online sales.

The essential benefits of a D2C business model

• control of the consumer connection directly and fully
• access to important client information and statistics on purchasing behavior
• complete customer lifecycle management
• having the ability to brand, customize, and improve every aspect of the client experience
• increased profitability as a result of eliminating retailer expenses
• agility in testing and changing product offerings

D2c required capabilities

You need the appropriate back-end infrastructure in order to enable a great front-end user experience. Mygento can assist you with identifying and outlining the end-to-end client experience you want to provide, as well as in building the various competencies required to get there.

Managing content for D2C eCommerce

Branded content in a variety of forms will be needed to manage a D2C e-commerce website. This covers anything from instructional and product photos to animated GIFs and blog posts. You'll have a lot of digital stuff to handle, including text, images, audio, and video. It is crucial to think about the content management solutions you will require. A CMS (Content Management System), PIM (Product Information Management), and DAM are frequently included in this (Digital Asset Management). It's critical to choose the appropriate combinations and integrations from the start if you want to be able to handle all of your information effortlessly.

D2c Ecommerce Data Management

You'll also need to handle your data in addition to your content. One benefit of moving D2C is the seemingly endless supply of client data, but this wealth of knowledge is only useful to the degree that you can gather, organize, and comprehend it.

Construct a foundation that scales as your business grows

With the help of an effective D2C website, you can swiftly scale and grow your business. It allows you to experiment with your product line and marketing to produce genuinely wonderful consumer experiences. You need a strong technological base on which to construct your business if you want to be successful and profit from D2C.